LSEG and Microsoft Launch DMI Platform for Private Funds
London Stock Exchange Group (LSEG) and Microsoft have launched Digital Markets Infrastructure (DMI), the first blockchain private funds platform by a major exchange. Built on Microsoft Azure, DMI covers the full fund lifecycle, from issuance and tokenization to distribution, settlement and post-trade servicing, ensuring interoperability between distributed ledger technology (DLT) and traditional financial systems.
The launch marks the completion of the first live transaction: a primary fundraise for MCM Fund 1. MembersCap acted as general partner and FCA-regulated exchange Archax served as nominee. EJF Capital has joined as an early adopter. This tokenized private fund transaction demonstrates how DMI can streamline manual processes, accelerate settlement and improve auditability of fund records.
LSEG plans to expand Digital Markets Infrastructure beyond private funds into other asset classes. Private funds on DMI are discoverable via LSEG’s Workspace database. As the platform scales, success will depend on custody solutions, trading rules and regulatory clarity. The launch of DMI represents a significant step in modernizing private fund infrastructure and highlights growing adoption of tokenization in traditional finance.
Neutral
The launch of LSEG’s DMI platform is an infrastructure milestone for tokenized private funds, offering interoperability and efficiency. However, no specific cryptocurrency token is directly affected by this development, and adoption timelines, regulatory clarity, and secondary market infrastructure will influence any long-term value impact. Therefore, the immediate price impact on tokens is neutral. Over the long term, improved private market tokenization could support broader DLT adoption, but short-term market movement is likely limited.